Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1887-12-02
OUR BANNING system.
Annual Report OF TIE Comptroller Of
the Currency,

by telegraph 10 the Dspatch.l
WAsHlNGroN, d. c., December 1.-The
twenty-filth annual report of the Comp
troller of the Currency, now in print
will be presented to Congress on the first
day of its session. Tie report show.
that the total number of national banks
organized up to the Dist OF October /,
500, of which 62j have gone into vol
untary liquidation and ll9 have failed,
leaving in operation at that date 3,O6l.
The total number of new banks formed
during last year is 225 total number
closed during the year is 30, OF which
% went into voluntary liquidation
and failed. The new banks comprise
) in New England. 81 in the Middle
States. 30 in the Southern States, l07 II
the Central States. and 30 in the West
ern States and Territories OF the failed
banks ! was in New England, in the
Middle States, I IN the Southern States,
and in the Central States. The gross
increase in national-bank capital during
the year amounts TO S36,39i, rs, OF
which 8. SOS, O0j represents an increase
of capital by banks existing November
|, 1886. There has been, however, a
decrease of capital of S6,322, $50, OF
which S4,0S7. $50 is the aggregate
capital Of 33 banks, which went
into voluntary liquidation and failed,
and the remainder represents the
decrease of capital by banks still IN
operation The net increase of capital
is. therefore, $50, 572.325 On the other
hand. there is a net decrease of $50, i95,
$50 in circulation, represented by bonds.
The decrease resulting from the surren-
der Of circulation by banks still in
operation is S57,7I0,i7j, and the de-
crease caused by banks going INTO volun-
tarv liquidation and failing is Sf,274,
3S6, making the gross decrease Of &c.,
04, $50 offset by a total increase OF
eS,549, 265, which consists OF an increase
by the formation Of new banks OF
1852, 090-an increase Of circulation
by previously existing banks TO the
amount of 1897, us.
Very full statistics have been collected
about state banks, savings banks, loan
and trust companies. and private bank
ers throughout the country. The sug-
qcshons made by the Comptroller as "a
amendments to the laws are in the
form of a code, revising and cOnsoli-
dating al existing laws, with a number
of changes, each Of which is fully eX-
planned. and the reasons for 1t are set
forth at considerable length.
The most important of the changes
recommended are that the minimum
amount Of bonds to be deposited az Sc
curity for circulation shall be 10 per
cent. of the capital of banks OF not over
S252. coo, and %25. 600 for banks OF which
the capital exceeds $3.50, eco; also that
the semi.annual duty ON circulation be
hereafter charged only on the amount is
sued upon bonds deposited in eases Of
the minimum amount as above. He
also recommends that national bank
notes Ice counted as part OF the lawful
reserve of banks.
The existing provisions OF the law as to
the responsibility Of officers ana dircc-
tors OF bank are modified 50 as b avoid
the heretofore existing obstacles to then
prompt and certain enforcement The
restriction upon banks as 10 making
loans in excess of 10 per cent OF the
capital to any one party is modified in
respect to loans upon collateral security,
and the total limit is raised to 20 PER
cent. OF the capital, and Surplus pro
visions as 30 the reserve upon deposits
are modified SO as to not include Govern
ment deposits in the amount upon which
the reserve is 10 be held, The provision
as to the State taxation OF national banks
is also modified.
The proposed code has been trans
mitted TO every Senator and Representa-
tive, with codifcation OF all existing
laws on the subject arranged in sections
parallel with those of the proposed code,
and accompanied by letter explaining
each OF the more important changes and
piyiDo the reasons for 1t.